National Investment and Infrastructure Fund (NIIF) is a government of India backed entity established in 2015 to provide long-term capital to the country’s infrastructure sector. The Indian government has 49 per cent stake in NIIF with the rest held by marquee foreign and domestic investors such as Abu Dhabi Investment Authority, Temasek and HDFC Group. NIIF manages $4 billion of capital. Securities and Exchange Board of India (SEBI) has already approved NIIF as an alternate investment fund
There are three types of funds managed by NIIF:
The Master Fund is an infrastructure fund primarily investing in operating assets in core infrastructure sectors such as roads, ports, airports, power etc. The Master Fund invests in mature businesses with long-term track record, often operating in regulated environments or under concession or long-term agreements. These businesses are expected to provide predictable inflation-hedged and stable cash flows.
The Fund of Funds (FoF) seeks to invest with experienced fund managers who have a strong track record and have demonstrated their ability to execute their investment strategy successfully. With the ability to invest in funds as anchor investors, it expects to enable fund managers to attract further institutional investors to invest in their funds. While focus is to invest through third party fund managers that raise discretionary funds, we may also selectively form joint ventures with fund managers.
The Fund of Funds invests across infrastructure services and allied sectors (traditional infrastructure, green energy, social infrastructure, manufacturing, and services), product strategies (equity, mezzanine, debt) and investment styles (early stage, growth, control).
The Strategic Fund is aimed at growth and development stage investments in projects/companies in a broad range of sectors that are of economic and commercial importance and are likely to benefit from India’s growth trajectory over the medium to long-term.
National Investment and Infrastructure Fund (NIIF) of India and Canada Pension Plan Investment Board (CPPIB) has announced an agreement for CPPIB to invest up to US$600 million through the NIIF Master Fund. The agreement includes a commitment of US$150 million in the NIIF Master Fund and co-investment rights of up to US$450 million in future opportunities to invest alongside the NIIF Master Fund.
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